The CDP, which promotes sustainable energy use on a global scale, has published its 2024 Energy Report. The report provides significant analyses of corporate renewable energy (RE) purchasing and usage habits.  

Key Findings: 
- Total Energy Consumption: According to the report, the total electricity consumption of 9,551 companies is determined to be 3,571 terawatt-hours (TWh) annually. This amount equals approximately 13% of global electricity production, demonstrating these companies’ substantial share in global energy demand.  

- Low Progress on RE Goals: Only 10% of the 9,551 companies have set a goal to source 100% of their electricity from renewable sources. Currently, these companies report using 53% renewable energy on average. The majority of these goals are expected to be achieved by 2033. However, 75% of companies have no targets to increase their renewable energy usage.  

- Energy Efficiency Goals: Only 433 companies (5%) have set targets to enhance energy efficiency. These goals are most prevalent in the manufacturing (5%) and materials (7%) sectors.  

- Global Renewable Energy Usage Rates: Corporate renewable energy usage fell short of claims. Companies reported an average renewable energy usage rate of 29%, but only 16% of this was verifiable.  

- Verification and Transparency:Among companies claiming 100% renewable energy usage, only 34% have a report or third-party verification to substantiate their claims. This means only one out of three companies making such claims can provide supporting evidence.  

- Scope 2 Emission: 61% of companies do not conduct third-party verification of their Scope 2 emissions.  

- Energy Procurement Mechanisms: While most companies purchase renewable energy through contracts with energy suppliers, large consumers prefer direct power purchase agreements (PPAs).  

Sectoral and Regional Analysis:  
- The highest electricity consumption occurs in the materials (33%) and manufacturing (26%) sectors.  
- The service sector leads in renewable energy usage, with a rate of 46%.  
- The report highlights energy consumption and renewable energy use across various sectors. While the manufacturing and materials sectors account for the largest share of renewable energy use, the service sector takes the lead with its 46% renewable energy usage rate.  
- Regionally, renewable energy procurement is more common in Europe and North America compared to other areas.  

 Energy Procurement Mechanisms  
Companies use various methods to procure renewable energy:  
- Contracts with energy suppliers: Preferred by 1,614 companies.  
- Energy Attribute Certificates (EACs): Used by 1,206 companies.  
- Power Purchase Agreements (PPAs): Adopted by 889 companies, providing 270 TWh of renewable energy.  

The report emphasizes gaps in corporate transparency regarding energy usage and verification processes. It also stresses the need for companies to set more ambitious targets and present clear roadmaps to achieve them.  

CDP’s report sheds light on the critical role of corporate energy users in the global energy transition and highlights the need for increased efforts to achieve a sustainable future.  

Access the full report here.